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Address: 1601 Jackson St, Omaha, NE

Phone number: 402-208-8847

CEO: Jaymes Haar

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Table of Contents

Executive Summary ............................................................................................................... 3

Vision and Mission Statement ........................................................................................... 4

Market Opportunities ........................................................................................................... 4

Market Strategy ....................................................................................................................... 5

Business Strategy .................................................................................................................... 7

Organizational Structure and Operations .................................................................... 8

Management and Organizational Behavior ................................................................. 8

Legal Environment Analysis ............................................................................................ 20

Core Competencies and Challenges .............................................................................. 24

Financial Plan ......................................................................................................................... 24

References................................................................................................................................ 32

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Executive Summary

HAZIL Inc. will be a one-stop window where businesses can receive great service in meeting their marketing advice, strategy designing and printing needs in the Greater Omaha region. HAZIL’s vision is to become an internationally recognized leader in addressing the current marketing needs, focusing on advertising and media services that provide effective results for multiple businesses worldwide.

HAZIL was established after realizing that that many small and medium businesses struggle with research and development and packaging their services to attract clients. HAZIL intends to satisfy this need in the metropolitan area for small and medium business needs in a packaged service without having to visit different places in the quest of completing their services presentation to their clients.

Within this context, HAZIL will show in this business plan how it is going to provide their customers with effective market research in their area, developing a market strategy based on the research results, and finally help the businesses to develop graphic designs that will show their products in the most positive way towards implementing their marketing strategies. Marketing Advising is responsible for effecting market research and marketing strategy that will respond to the customer's current needs. HAZIL Graphic Design will extend that service by providing design needs to implement these marketing strategies and further meet then businesses printing needs to produce logos, banners, flyers, and other advertising tools necessary to market the businesses’ products.

In this business plan HAZIL will show that it will begin to record net profit within one year of

$30,090 and in 2016 HAZIL will generate a profit of $75,081. Two years later HAZIL will be able to buy or construct its office buildings or complex. In 2018, four years since establishment, HAZIL will make its first move to expand into the region by opening its first office in Kansas City, MO.

HAZIL will focus on marketing solutions, strategies, techniques and advising. Companies with a lack of knowledge or human resources to develop these functions internally will seek HAZIL’s services in order to solve their marketing problems. Operationally, HAZIL’s team of marketing experts will meet with business representatives to discuss their needs and create effective solutions. The team will then offer different options in order to attain their marketing objectives. Once a decision is made, the marketing team will develop the strategies, and will pass the next function to the graphic design team.

HAZIL Graphic Design department will focus on turning the ideas of the marketing solutions into a visible product. The graphic design services will always follow the current graphic trends; it will be innovative, creative, and attractive. The graphic design team is responsible for creating both printing and digital services.

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Vision and Mission Statement

Vision Statement:

To be an internationally recognized leader in addressing the current marketing needs, HAZIL focuses on advertising and media services that provide effective results for multiple businesses worldwide.

Mission Statement:

HAZIL effectively engages small and medium business in Marketing Advising, Graphic Design and Printing that prepare them to promote their business in a competitive market. We provide enterprises with a powerful infrastructure or knowledge for marketing strategy, making the influential Graphic Design and printing with low cost. We provide our customers with different services to help them achieve their most ambitious marketing goals and strategic communications objectives.

In each of the different areas, HAZIL will focus on the customers, trying to satisfy their needs, and provide them with effective solutions to their marketing and promotion problems. These include innovative ideas and strategy, avant garde graphic design, and high quality printing solutions. Thus, helping business to promote their products, services or events in an effective manner, which is appealing for the specific audience.

Market Opportunities

At first, HAZIL will be focused on providing services to small and medium business in the Omaha/Council Bluffs Metropolitan Area. At the same time, we will seek potential prospects in surrounding communities and other metropolitan areas in the Midwest. These target markets have been selected, because there is a wide range of small and medium businesses in the metropolitan area, as well as community and non-profit organizations, which do not have access, knowledge, or the infrastructure to develop effective marketing techniques. Solely on the Omaha Chamber of Commerce, more than 2,600 businesses are actively working within the metropolitan area (“Business Directory”, 2011). HAZIL can provide service to many of these businesses in many categories, which increases the opportunities for growth.

Capacity and size will not be a determinant for growth. This is because the types of services HAZIL offers are mostly based on talent, knowledge, and creativity. Thus, opportunities for growth in the target markets will be high. These opportunities will be based on reputation, word of mouth, and referrals. The objective is to make people aware of the effectiveness of our services and products, and how these modern, avant garde, and creative ideas can suit their business. Since the services HAZIL provides are very flexible, the company can reach businesses in the entire metropolitan area, communities in the states of Nebraska and Iowa, and other major cities in the Midwest, which is where most potential prospects will be located. Technologies like Internet communications and first class delivery will also help the company to provide its recognizable services for customers in distant areas.

When analyzing the different competitors in the target market, we have discovered a lack of the specialization that HAZIL desires to establish. Most of the companies located

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in the Omaha/Council Bluffs Metropolitan Area, offer single specialized services either in marketing, graphic design, or printing. Although they also offer services within other areas, they either outsource the printing process or use template and generic graphic design. Thus, they are not providing the customer with a personalized, all in one service. Other companies outside the Omaha/Council Bluffs Metropolitan Area offer more or one of these services, but they have a geographical disadvantage in the target market. In the next table we compare the strongest competitors and the type of services they offer in the target market. However, it is important to consider that these companies could further expand into these other services over time.

Competitor’s Chart: Pursuit in the target Market

Name Services Specialized

Services

Omaha Location

M G P Bozell Marketing and Graphics Yes

Down Design Graphics and Printing Yes Omaha Print and Copycat Print and Graphics Yes

92 West Marketing and Graphic Yes Allegra Network Maketing, Print, Mail No

Elm Street Print and Graphic No

Market Strategy

As described previously, HAZIL services will be based on specialized marketing, graphic design, and printing. These three departments will offer solutions, services, and products to the costumers, and they will be connected to each other. Thus, the ideas developed during the marketing strategy will remain constant through the entire process until the final product is delivered. This is a great advantage, because most of the competitors described in the previous section do not offer the quality and integration of these three different services.

Product/Service:

HAZIL Marketing will be focused on marketing solutions, strategies, techniques and advising. Companies with a lack of knowledge or human resources to develop these functions internally will seek HAZIL services in order to solve their marketing problems. A team of marketing experts will arrange a meeting with the business representatives in order to discuss their current problems and create effective solutions. At the end of this set of sessions with the business owners, the team will offer them different options in order to attain their marketing objectives. Once a decision is made, the marketing team will start developing the strategies, and will pass the next function to the graphic design team.

HAZIL Graphic Design will be focused on turning the ideas of the marketing solutions into a visible product. The graphic design services will always follow the current graphic trends; it will be innovative, creative, and attractive. The graphic design team is responsible for creating both printing and digital services, which include:

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Identity: Logos, brand identity Print Advertising: photography, banners, flyers, billboards, magazine and

newspaper ads, business cards, postcards, invitations, door hangers, event tickets, gift cards, magnets, posters, and t-shirts.

Digital Advertising: Websites, digital ads, Facebook and Twitter templates, video productions, and television ads.

HAZIL Printing is one of the elements of HAZIL that adds value to the company’s services. This is because the company will have the asset of its own offset and digital printing machines, which will give the company many advantages, independence, and lower cost over time. At the same time, customers will be beneficiated too. This is because the ideas developed during the marketing advising could be effectively translated into final products, without the limitations of a third party.

Pricing and Packaging:

Pricing will be another important element market strategy. HAZIL services will be mostly charged following the following standard pricing chart. However, it is important to consider that each project will be unique, and different capabilities or resources might be needed, which will directly affect the price. Because of the nature of the services, packaging will follow industry standards, and it will be irrelevant for the price.

HAZIL Services Package Contains Price

Whole Package Full services starting with advising and finishing with

printing

From $10,850 - $21,025

Marketing Advising A set of up to three sessions with the marketing advisors.

$300.00

Graphic Design: Identity

Logo and Brand Identity $150.00

Graphic Design: Print Solutions

Each work would be charged per project.

$50.00 Basic $75.00 Deluxe

Graphic Design: Digital Solutions

Websites/Video Production $350.00 Basic $425.00 Standard $500.00 Deluxe

Printing ∫ Depends on quantity and quality. From $10 for a small project to $20,000 for large productions of 50,000 copies.∫

Positioning:

Based on these low prices, HAZIL will be positioned as a low-cost effective marketing, graphics, and printing solutions. However, it will offer modern and innovative solutions at a low cost. As a new company, it will be important to demonstrate the effectiveness and advantages of its inexpensive services. Omaha’s small and medium business will

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appreciate the sophisticated look of their marketing campaigns at a price they can afford. These attributes will strongly position HAZIL in the metropolitan area, and it will enhance the word of mouth power of the company.

Promotion:

HAZIL will be mostly advertised trough different business and community events throughout the metro. This is because it will be more important for the company to create a direct first impression with the customers. At the same time, in these events it will be most likely to find potential prospects, and contact other small and medium business of the metro. Also, it will be important to advertise in local business magazines and websites, where the potential prospects are more likely to be exposed. However, HAZIL expects to obtain most of its promotion from word of mouth. As the company delivers its first finished projects, other businesses should notice the difference and uniqueness of the design. Also, satisfied customers would start to give a great reputation to the company.

Placement:

The company’s main office will be located in a rental office with a big storage unite to support the printing presses and equipment. It should be located at the core center of the downtown business district. As the company growths, it is expected to purchase its own building in order to gain independence. Additionally, the online capabilities of the company will allow it to do business in further areas. This provides an advantage for the customer, whom could easily reach HAZIL in any possible way. Also, the final products will be delivered to the customer in a timely fashion, or they could be placed in the respective areas, depending on the type of project and the customer preferences.

Business Strategy

Business Model:

Revenue: HAZIL’s revenue is derived from small and medium business in the Omaha metropolitan. We have three main departments which provide our customers with different services. Marketing department’s revenue comes from market research and marketing strategy that regarding to the customers' needs. Graphic design department’s revenue is made up chiefly of helping the customers to design logos, websites, banners, flyers, and other advertising tools. These services can be printed through HAZIL’s Printing own’s printing facility, which become the revenue of the third department.

Profit: We are going to serve a package of the three kinds of services for customers. In this way, we can make marketing, graphic design, and printing continuously. It will make customers feel convenient to go through all these three steps in one company than three or two different service companies. In addition, HAZIL can cut the cost of printing service by having the asset of our own offset and digital printing machines. All these elements contribute to HAZIL’s profit.

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Market share: We are going to be competing with marketing, graphic design, or printing companies. However, these companies only provide one or two services. What makes us distinguished from them is our company providing customers all in one service.

Growth: We will get a loan from a bank to cover our financial expenses for the first year to be able to keep with the demand of the market. We will be able to pay our loans in the next year and increase our profit.

Strategic initiatives:

Our long-term objectives are increasing revenue every year and become recognized in the Midwest. At first, we will focus on the small and medium business in the Omaha metropolitan area. Then we will attempt expansion in the states of Nebraska and Iowa, and even the Midwest.

Timeline:

Organizational Structure and Operations

Efficiency is what keeps us ahead of all other marketing firms. We are a lean marketing firm and strive to reduce down time by hiring and providing employees with better training and cross-training skills to reduce incompetency.

HAZIL provides several different ideas for advertising needs and services. We are a ‘one stop shop’, by providing all your marketing needs. We do it all in-house.

HAZIL has a competitive advantage over other marketing firms as it strongly follows the 4 business disciplines of executing management.

Focus – HAZIL has a clear focus on what matters the most which is to ensure results-oriented advertising, public relations efforts, and marketing strategies that satisfy the client's goals and objectives. HAZIL is committed to produce a sharp clear

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image that attracts customers who in return will spread the word and keep coming back for more.

Leverage – HAZIL does all their printing in-house. It is not out-sourced to other companies which gives us a more personal touch when dealing with our customer’s needs. Nothing will be lost in the shuffle. All printing is done in our own plant which gives HAZIL more an edge in meeting deadlines. No waiting to send or ship out orders. This achieves a greater quality service at a cheaper rate.

Engagement – HAZIL is engaged to meet customer needs. HAZIL is very actively involved with the customer accounts to the extent that the partnership becomes one, where passion of a good job outweighs anything else.

Accountability – HAZIL is accountable and responsible for all their actions. HAZIL takes pride in keeping the customer satisfied, not just the first time, but repeatedly. HAZIL is committed to follow through with consistent action.

HAZIL prioritizes their time to concentrate on what is most important. From the top down, from the CEO down to the Admin, HAZIL focuses on their current projects, so that teams can succeed. Innovation is always important and can attract new customers by staying ‘on top of the game’, but we strive to focus on our current tasks.

HAZIL stresses to focus on the team’s outcomes that will lead to the best results. i.e. HAZIL doesn’t want to focus on being compensated in completing a job ahead of schedule; HAZIL wants to complete a job successfully.

Lastly, HAZIL requires each success of a project as a team effort. All team members are accountable to each other, their performance and the project. By working as a team, the end result is an increased level of performance and passion. There is no “i” or “u” in team.

By implementing these strategies, HAZIL provides sustainable competitive advantage which provides a diverse range of services in an increasingly demanding, complex and dynamic marketplace.

HAZIL uses a Matrix Structure in order to form teams from each department who will then report to an Account Manager. This structure allows employees with similar skills sets to be pooled for work assignments. For example, all Consultants report to a Manager of their own department, however these same Consultants may be assigned to different projects and report to an Account Manager while working on that project. Therefore, each Consultant will have more than one manager to get his job done. The Account Manager periodically meets and updates the Manager of the Consultants to they are aware of the task at hand. The Account Manager is concerned with keeping the customer happy, meeting deadlines and watching costs, while the Consultant Manager is more interested in keeping up with the rapidly changing technologies.

A matrix structure uses teams of employees to accomplish work, in order to take advantage of the strengths and make up for the weaknesses of functional departments. This structure allows HAZIL to achieve a higher degree of readiness and market adaptation by increasing the ability to respond to new customer needs.

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An Account Manager is primarily responsible for the project. The Managers over the Consultants provides technical expertise and assigns resources (Consultants) as needed.

By assigning an Account Manager to each project, it is an effective way to take full advantage of all communication as well as marketing channels. It provides cross-functional training as each team member learns from one another. To make a Matrix Structure work, it is very crucial to keep the lines of communication open. Hazel ensures this by scheduling recurrent appointments at the same time each month for everyone to attend.

Note: the difference between a project manager and an account manager is that a project manager coordinates between different teams to ensure that a project gets done on time on within budget. An account manager is someone that is in contact with the customer to coordinate them based on their needs. An account manager is responsible for the relationship between the company and the customer/client.

How the business is structured, the roles of each position and how the business works：

CEO – Chief Executive Officer

Responsibilities: developing and implementing strategies, making major decisions, main point of communication between the board of directors and operations. Has a position on the board.

CFO – Chief Financial Officer

Reports to CEO. Responsibilities: managing finances of company. Planning and record-keeping.

Vice President of Operations

Reports to the CEO. Responsible for maintaining a healthy operation within HAZIL to ensure employee satisfaction and positive moral. Responsible for making sure the day to day operations of the Supply Chain and Facilities departments are operating properly. Creates process design using a lean Six Sigma process which eliminates waste (tasks not needed) and produces a workflow for equipment and implementation requirements for certain types of marketing jobs, this includes flowcharting for visual effects. The VP must apply planning, organizing, staffing, leading and controlling in any decisions that they make in the operation management function. This is also to ensure that they can achieve the objectives of their operations.

Vice President of Human Resources

Reports to the CEO. Responsible for guiding and managing the overall provision of Human Resources services, policies and programs for the entire company pertaining to recruiting and staffing, employee relations, compensation and benefits administration, employee safety and welfare, wellness and health and employee counseling and services. Seeking high performance culture from employees that emphasizes quality and productivity to obtain goals and ongoing development of a superior workforce. Aims at reducing job dissatisfaction and turn-over. Promotes incentives by offering non-monetary rewards such as job empowerment, job rotation, being able to work from

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home, taking ½ day off or leaving early prior to a holiday. Makes sure all positions within Hazel are ‘best in class’ when researching the white paper (authoritative report issued by similar networking organizations) and have competitive salaries. This position will serve on the executive management team.

Vice President of Legal Council

Reports to the CEO. Responsibilities: Provides advice and counsel regarding legal matters and ensures implementation of the Company’s policies and procedures. Directs the operation of legal, insurance/risk management and claims; providing legal advice and representation, including policy recommendations with respect to general corporate, regulatory, real estate, environmental, property and litigation. Supports and consults with attorneys on issues, keeps informed on the latest developments in legal issues relative to the firm’s needs.

Vice President of Marketing

Reports to CEO. Responsibilities: planning and creating the marketing strategy for the company, its services and products. Liaison (connection or contact) between the marketing department and CEO. Designs, develops and executes revenue-generating marketing programs. Identifying and creating strategies to target markets. In charge of knowing the target audience and the competitors.

Manager of Advertising

Reports to VP of Marketing. Responsibilities: oversees advertising operations. Analyzes and monitors the business markets for “best in practice” ways in advertising to stay ahead of the game and be competitive. Handles the public relations. Produce and submits releases to the local and national media to attract attention to the company. Media spokesperson for the company.

Manager of Graphic Design

Reports to VP of Marketing. Responsibilities: oversees design and illustration operations. Initiate and inspire creative ideas to improve efficiency and cost effectiveness. In charge of graphic and web designs that assist in portraying the company’s image and brand to the public. Handles brochure layouts to get the company’s message across to the public.

Manager of Printing

Reports to VP of Marketing. Responsibilities: oversees cost effectiveness determined on the need for special equipment or work load. Oversees the printing facility to ensure the correct printing materials are readily available.

Account Managers

Reports to VP of Marketing. Responsibilities: assigned to clients. In charge of creating a Team to focus on each client’s needs. Each team includes someone from Advertisement, Graphic Design and Printing departments. Account Manager oversees customer’s needs from beginning to end and is in direct contact with the clients. Account Managers have knowledge and a good understanding pertaining to advertising, graphic designing and

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printing. (almost like a salesman). Have very good organizational skills to lead a project from beginning to end. They will stay with a client and not leave unless the client asks for a replacement. That way, the Account Manager knows the client and job well and the client/customer gets to know the Account Manager and doesn’t have to work with a lot of different personnel. They are responsible for entering Sales Orders for material needed for the marketing of the client/customer orders. The Sales Order for the material needed is entered into an ERP system so the material can be reserved in the warehouse closest to the client/customer and will be therefore available to the client/customer when it is needed based upon the schedule date (need date) of the project. They are also responsible at the end of each project to get with the client/customer and the whole team for a “Lessons Learned” informational meeting. There is a questionnaire to go over to see if the client/customer services were met. This is then used during a staff meeting so all Account Managers and Consultants can learn from this to better prepare for the next client/customer.

Attorneys

Provides legal support services such as legal research, review and preparation of written communications and legal documents. Knows the law and keeps track of new laws that affect the firm.

Paralegals

Uses a wide range of substantive legal knowledge to provide legal support services utilizing specialized company knowledge and legal concepts requiring recognition, evaluation, organization, analysis, and communication of relevant facts and legal concepts to assist in the delivery of a broad range of legal services to internal clients. Practices consistently in one or more specific areas of the law and is considered a specialist in those areas.

Advertising Consultants

Reports to the Manager of Advertising. Responsible for editing and writing the advertisement for the client/customer. In charge of the social media effort for the client. Researching and strategizes the advertising campaign. Good at judgment about social messaging. Great verbal and written communication skills. Creative towards reaching out to the audience. Plans and coordinates with media agencies to determine the most effective way to channelize the advertising to reach the best result. They are responsible for obtaining the copyright and patents. If a certain sound/music is to be used, it is their responsibility to obtain permission by writing a copyright agreement. If the work is original to HAZIL, than a patent or legal copyright is filed in order to obtain and control the profit. Takes direction from the Account Manager for the current job at task for that particular client/customer.

Graphic Design Consultants

Reports to the Manager of Graphic Design. Responsible for conveying information through visual tools that promote the client’s service/product. Works with a variety of tools to illustrate and capture audiences. Responsible for the art aspect of the advertising campaign. Makes sure the master plan (blueprint) of the printed or published work is arranged correctly. Creates a rough draft of all layouts. Makes sure

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the overall final appearance and relations hip between the graphic elements achieves a smooth flow of information with maximum effectiveness. Takes direction from the Account Manager for the job at task.

Printing Consultants

Reports to the Manager of Printing. Responsible for monitoring and managing the production of printed materials for the client/customer. Needs to know all types of software programs in order to design best fit for the client/customer. Takes direction from the Account Manager for the job at task.

Manager of Information Technology (IT)

Reports to the CFO. Responsible for providing leadership for planning the technology portfolio. Directs the development, maintenance, enhancement, procurement and implementation activities related to technology systems utilizing standard computing architectures. Responsible for cyber security.

Application Developers

Reports to the Manager of IT. Responsible for translating operational requirements for systems in order to design software requirements. Maintains current knowledge of information systems and technologies. Responsible for technical application development for all stages in the development lifecycle. Must be familiar with client/server and browser based networks and application performance issues with regards to network architecture and application design.

Manager of Supply Chain

Reports to VP of Operations. Responsible for leadership and overall direction of the sourcing and supply chain activities. Directs the infrastructure and services needed to support delivery, storage and transportation of material for the operations of the company. Responsible for oversight of all supplier diversity planning which includes SDD (Small, Diverse and Disadvantaged) business. Oversees the contract administration activities on Purchase Orders.

Buyers

Reports to the Manager of Supply Chain. Responsible for procurement and for obtaining and reviewing proper paper work for materials and services needed that are attached to a Purchase Order. Creates Purchase Orders according to the ERP sourcing module based upon min/max levels at the inventory warehouse. Must negotiate pricing, payment terms on Purchase Orders. Works closely with the Legal Department to ensure contracts are in place for liability needs.

Inventory Planning Analysts

Reports to the Manager of Supply Chain. Responsible for understanding the ERP system used for Planning of material and inventory management. Analyses data to ensure of JIT processes. The replenishment process is based on a min/max level. Once the available inventory quantity goes below the minimum level, a purchase order is created depending upon the lead time of the vendor’s delivery. That way the purchase order is

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created keeping the lead time days in mind, therefore, the Analyst checks the levels to make sure the vendor lead time is updated and the delivery is made within the right time. If anything is late, it appears on a report the Analyst researches to see if adjustments to the lead time, min/max levels or transportation schedules should be made.

Warehouse Managers and Logistics

Reports to the Manager of Supply Chain. Responsible for operating the inventory warehouse. Pulls inventory material according to the ERP Planning module based on a Picking Plan ticket and is responsible for loading the delivery trucks according to the Transportation Schedule. In charge of quality assurance of certain inventory materials, cannot enter the receipt of material until it passes quality assurance. In the ERP software system (Enterprise Resource Planning), certain materials can be flagged as needing a 4-way match before the vendor can receive payment for the material they delivered. (Purchase Order, Receipt, Quality Assurance/Control & Invoice all need to have the same quantity before the ERP System will say the invoice matched and can then schedule for payment). Responsible for transportation analysis and savings to implement the most effective logistics schedule while reducing cost.

Accounts Payable Coordinators

Reports to the Manager of Supply Chain. Responsible reviewing and entering invoices associated with procurement but not limited to purchase order activity. Enters the invoice into the ERP system. Sets up payment terms and procedures such as check, wire exchange or procurement card. Resolves bill discrepancies.

Manager of Facilities

Reports to the VP of Operations. Responsible for providing vision and setting direction that enables the enterprise to achieve strategic advantage in the area of business and technology security, continuity and recovery. Leader of Crisis Management Team. Plans, develops and implements the company’s overall business security and continuity strategy. Plans company space policies and use of that space and property management services. Directs corporate flight and travel services. Responsible for developing and implementing physical security.

Facilities Office and Field Operations Maintenance Coordinators

Reports to the Manager of Facilities. Responsible for coordinating space, infrastructure, people and the organization. Responsible for coordinating maintenance, testing and inspection such as snow removal, lawn mowing, insect spraying, cleaning of all office areas. Allocates space and facilitates changes in organization pertaining to moving of office furniture etc.

Human Relations Coordinators

Reports to the VP of HR. Responsible for managing the day to day operations of the HR office including HR policies, procedures and programs. Training and development of benefits, compensation and ethnical procedures. In charge of payroll. Promotes and meets with managers to go over non-monetary job incentives.

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Safety Coordinators

Reports to the VP of HR. Responsible for developing safety strategy in alignment with HAZIL’s strategy. Develops implementation plans, monitors effectiveness, makes recommendations for improvement and provides feedback for maintaining safety at all times. Ensures all incidents/accidents are properly reported and investigated and followed up. Monitors compliance with the Worker’s Compensation Act. Coordinates with the Facilities Office and Field Operations Maintenance Coordinator in setting up procedures for tornado and fire drills at all locations/offices.

How the business works Cont：

The VP of Marketing gets the word out about the company

The VP of Marketing works with the Managers who report directly to him/her to accomplish this.

When clients/customers are interested in using HAZIL, they speak to a Account Manager. The Account Manager is up to speed with all departments and technology. Once the Client/Customer signs a contract with Hazel, the Account Manager creates a team that comprises of an advertising, graphic design and printing consultant. Depending on the how large the job is, there could be more than one consultant from each area. Legal counsel is always sought when a new project begins.

Organizational Chart：

（Please see the last page.）

Operational decisions :

Supply Chain and Facilities reports to the VP of Operations. The operational decisions of HAZIL are carried out through these departments. The VP of Operations works with the Facilities Department to find the best location for HAZIL’s clients/customers. Within that physical location, there must be proper security and infrastructural needs in place in order to run the location effectively. Transportation is considered, the location must be easily assessable. The location must attract clients/customers and should allow for quality of life for employees, which means close to schools and eating facilities and in a good part of town. Operations works with Facilities to increase productivity and reduce cost while improving flexibility to meet client/customer needs and improve overall customer service.

Supply Chain works with the operational side to create an effective meaningful truck, boat and air schedule for the entire company. Because HAZIL is trying to be stronger internationally, it is important to have strong logistics in place. Once the Company is aware of the transportation schedule, the rest of the departments can schedule their work accordingly. If employees need to travel, they can plan it around the transportation schedule. If there is a need to transfer certain materials, a machine or art drawings, they know when they can receive it according to the mail and transportation schedule.

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Because HAZIL is a market-based strategy business, it makes good sense to have IT report up through the CFO. The strategy is driven more by the marketing organization, IT will then follow-up by making sure that strategy is delivered, they are to support whatever the strategic positioning of the company is. Because CFO is a major influence on running the business, IT is used for growth and control. Since the CFO is responsible for SOX, it makes sense that IT needs to work closely with financial reporting and financial controls. Since the CFO is responsible for measuring the performance of the company, it makes sense that the “data” comes from IT.

Once a client/customer is interested in using HAZIL, they are instantly put in contact with an Account Manager. The Account Manager forms a team using the consultants for a strong alignment. The purpose of this is to keep dedicated marketing resources with the client, so a solid trusting relationship is built. Once a client/customer hires HAZIL, the Advertising Consultant works on any copyrights or patent agreements.

Core Team Members:

o Account Manager – public relations with the Client/Customer. Manager of the

project

Advertising Consultant

Graphic Design Consultant

Printing Consultant

Key Investors:

CEO

Board of Directors

Shareholders

Employees (they are allowed a percent of stock in HAZIL via their

401K)

Companies who have HAZIL as part of their account for

advertising/marketing needs

Critical Decisions of Operations Mgmt – how they impact the firm:

Service and Product Design

At the end of each client/customer project, a questionnaire is

completed to see if the service and products were met to their

expectations. A meeting is scheduled at the end of every project to

walk through a “Lessons Learned”. This provides improved quality

and interaction between HAZIL and future/recurring

client/customers. HAZIL wants a user-friendly yet competitive

environment relevant to their customers. HAZIL wants to understand

the behavior of the customers, their needs and motivations.

Quality Management

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Any materials ordered through HAZIL can be set up to where quality

assurance/control is needed before the material can be used.

Process Design

The VP of Operations is in charge of creating template for each type of

marketing job that shows a workflow design making sure all

implementation requirements and all equipment needs are met.

Location

Operations Management works with Facilities and IT to make sure the

Locations selected for offices are good for marketing and makes sense

geographically.

Layout Design

The Graphic Design Consultant makes sure the master plan

(blueprint) of the printed or published work is arranged correctly.

Creates a rough draft of all layouts. Makes sure the overall final

appearance and relationship between the graphic elements achieves a

smooth flow of information with maximum effectiveness.

Human Resources and Job Design

The Human Resource department periodically researches white paper

of other marketing firms to ensure jobs (positions) at HAZIL have

fairly competitive salaries and strives to be ‘best in class’. The HR

department promotes non-monetary incentives to keep job

satisfaction and reduce high turn-cover ratio.

Supply Chain Management

The Supply Chain department has a strong ERP software system that

is automated to replenish inventory items when they get below a

certain level, reserves items when needed, has a strong logistics

(transportation) schedule to know when to pull material off the

warehouse shelf. Has Buyers to enter purchase orders to procure

(buy) the material or any services that may be needed.

Inventory, Material Requirements Planning and JIT

The ERP software system has auto replenishment based on demand

(sales orders, forecasts) and supply (available quantity, incoming

transfers from other warehouses, incoming purchase orders). The

ERP MRP (material requirements planning) also has forecasting built

in to take into consideration trends based on calendar. i.e.

advertising/marketing is busiest around holidays and around when

tax returns are received. Holidays are when most spending occurs,

May is when households receive their tax returns and feel they can

justify spending money as a “reward”. The ERP MRP is aware of such

trends and forecasts material needs accordingly.

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Break-even Analysis:

Below is the calculation of the break-even point which indicates number of overall services

needed to be met for not being lost in sales. The data used is retrieved from the Projected

Income of the year 2014.

Calculation of Break-Even Point:

Sales = FC + TVC

FC = Fixed Costs

TVC = Total Variable Costs

X1 = Sales of Whole marketing package

X2 = Sales of Marketing advising

X3 = Sales of Graphic identity design

X4 = Sales of Graphic printing design

X5 = Sales of Graphic digital design

X6 = Sales of Printing

Apply sales prices into the formula, we have:

12,465X1 + 300X2 + 150X3 + 65X4 + 396X5 + 11545X6 = $158,726 + $21,454 = $180,180

HAZIL plans to have the requirement for sales quantity as listed below:

3 1 7X

5 2 15X

10 3 25X

5 4 15X

5 5 15X

5 6 10X

With these variables, POM-QM is used to solve for the breakeven sales which are:

X1 = 10 X2 = 5 X3 = 10 X4 = 5 X5 = 5 X6 = 5

Based on this, HAZIL needs to makes sales as following to be able to breakeven:

1. Whole marketing package: 10 services

2. Marketing advising 5 services

3. Graphic identity design 10 services

4. Graphic printing design 5 services

5. Graphic digital design 5 services

6. Printing 5 services

Management and Organizational Behavior

Coordination of the efforts of people to accomplish desired goals and objectives is

paramount in all business and organizational activities. By utilizing available resources

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efficiently and effectively management puts in place planning, organizing, staffing

towards achieving the organization’s stated goals. By resources we mean the

deployment and manipulation of human resources, financial capacities, technological,

and natural resources towards accomplishing goals.

At HAZIL Inc. management is regarded as a major factor of production along with other resources such as machines, materials and money. The basic task of a management is twofold: marketing and innovation. However, in the context of HAZIL Inc., innovation is also linked to marketing as to how the product or service is presented to the end-user. HAZIL Inc. intends to use marketing as vital part of its business success, even though management and marketing are generally understood as two different branches of business administration knowledge.

Within HAZIL Inc., directors and top management will have the authority and responsibility to make decisions to manage the company enterprise as part of their assumed authority. This will comprise coordinating functions of formulating corporate policy and organizing, planning, controlling, and directing the firm's resources to achieve the policy's objectives.

Recognizing that good management requires carefully planned manipulation of the human capital to contribute to the success of the organization HAZIL will ensure effective communication and working environment that will inspire motivation among associates to ensure success.

HAZIL Inc., intends to make a profit (for the shareholders), create valued products at a reasonable cost (for customers), and providing rewarding employment opportunities for employees. These goals will focus the efforts of all employees at HAZIL Inc., - from the top management to the associates – towards ensuring that the organization’s goal is achieved.

Communication is very crucial in the success of business. HAZIL Inc. will be exceptionally successful because it will give preferences to good communication within the organization. In order to achieve transparency HAZIL Inc., will ensure sound direction of communication, maintain solid channels of communication.

In order to maintain effective communication, HAZIL Inc., will use a model of communication used generally by smaller group networks, all channel communication, which in essence means allowing employees to communicate actively with each other, making all members free to contribute. Surely, this channel of communication WILL contribute to the success of the HAZIL organization

Similarly HAZIL Inc. will employ the matrix organizational structure as an effective way to take full advantage of all communication channels. The structure is the pivotal point of success in any organizational communication. The matrix structure is made up of cross functional work teams that have the ability to report to heads of the organization other than the primary supervisor. This structural behavior WILL allow the corporation to have successful communication upward, downward, and laterally with its employees.

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Decision Making:

Perception is reality. In the mind of people, most times, decisions are based on perception, real or imagined, regardless of how that perception was built or informed. Causes that shape or distort our perceptions have a tremendous effect on the impact of an organization's behavior. Individuals, by nature, develop perceptive shortcuts when passing judgment and inflect both positive and negative effects. Starbucks, for instance, has realized this importance in the decision making process of its organization and has been successful in modeling guidelines to direct employee behavior and shape corporate perception to aid in its success.

Because HAZIL Inc., understands that decisions can be based on perceptions of individuals, influenced by upbringing, beliefs, or current state of mind; models will be developed to guide individuals through the process. The creation of these models creates a standard that is followed to deliver a satisfactory result. These models will identify a need, create a process to determine what qualifications will satisfy the need, determine matches to the need, then a decision is made on what match best suites the need that HAZIL is aiming to achieve.

Legal Environment Analysis

HAZIL is choosing to be a C-Corporation (or a regular corporation) as their legal entity. Note: (a legal entity is a firm that has legal standing in the eyes of the law. A legal entity can enter into agreements or contracts, assume obligations, incur and pay debts, sue and be sued and to be held responsible for its own actions. A business entity is a firm that is formed and administered per law in order to engage in business activities in the sale of a service. There isn’t any difference between Inc. and Corp in the Company’s name).

A corporation is a legal entity that consists of a group of people who have formed a business and have been recognized by some public agency as a corporation.

This means when the corporation is sued, shareholders are only liable to the extent of their investment into the company. Their personal assets are not affected. Also, any debts that the company may have are also viewed as the corporation’s responsibility, not the individual investor. Once the business is incorporated, shareholders are protected by the “corporate veil”, or limited liability.

Since the company is a separate entity, it is an individual taxpayer according to the IRS. Because of this, corporations have a double taxation, meaning that profits are taxed once on the corporate level and again when the profits are distributed as dividends to the shareholders.

We chose HAZIL to be incorporated to get the limited liability in order to protect the company’s shareholders. Shareholders personal assets cannot be touched.

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It is much easier to raise capital because HAZIL has stocks to sell. Once HAZIL makes a profit, investors will want to buy dividends which will help us avoid taking out loans and paying interest rates to secure capital.

Corporations attract better employees who are interested in stock options as part of their benefit. Owners of HAZIL are the shareholders who received stock in the company. The owners exchanged money, property or both to gain capital stock.

Fringe benefits can be deducted from taxes as a business expense. For example: if the company offers and the employees as well as the shareholders/owners participate in life insurance, health and disability insurance, medical expenses not paid by insurance etc.

If an owner dies or stocks are transferred, HAZIL will not stop running, it can last forever.

A corporation’s overall management is held completely by the board of directors chosen by the shareholders. The board of directors elects the corporation’s officers, who handle the business’s day-to-day affairs under the board’s general direction. Shareholders elect by voting for directors, they also receive information, inspect corporate records, vote on fundamental business decisions (such as mergers and liquidations), and share in distributions. Corporations are taxed at the corporate level; the dividends are considered income to the stockholders.

We did not elect to go with an S corporation because the number of shareholders is limited and we could only have one class of stock. The owners report their share of corporate profit or loss on their personal tax returns and could use the companies loss to offset income from other sources. We prefer to allow the owners to split the corporate profit among owners and the corporation paying a lower overall tax rate.

As far as possible legal liabilities concerns HAZIL could face, we researched as much as we could. We have been in contact with the VP of Legal Counsel. We made sure our business name of HAZIL, Inc. was not already used by another company. We went to the Iowa and Nebraska state agency and performed a search.

We chose a business structure of corporation thinking we’d have the least amount of risk and the best tax structure for the company.

We feel we have the appropriate business license and have filed our tax registration.

We had our legal department come up with non-disclosure agreements so that when we partner with a customer/client, they cannot reveal anything about our company to a competitor.

We have properly zoned our business locations.

We are having our legal department check into General Liability Insurance which protects HAZIL’s assets and pays for medical costs if someone would happen to get hurt

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while on HAZIL’s property or when there are property damages or injuries caused by one of HAZIL’s employees. We are investigating if HAZIL needs this type of insurance.

We are investigating if we need Professional Liability Insurance which protects against errors and negligence to the customers.

We have Commercial Property Insurance that is similar to home-owners insurance in case of fire, smoke, weather, vandalism etc.

We do have employee insurance which offers Workers Compensation Insurance, Unemployment Insurance Tax and Disability Insurance.

We do not feel we are required to file a state license. But we are required to file a city or county license. We can obtain these licenses by going to the city hall or county government. This is where the planning or zoning department comes to check our location(s). We need to make sure the location(s) we have are properly zoned for our type of business if it isn’t, we need to get a zoning permit.

We do not feel we need to get a federal business license since our type of business does not fall under the category of being highly or heavily supervised by the federal government.

We did obtain a sales tax license so we could charge sales tax where applicable.

Note: Regulatory environment consists of laws and regulations that has been developed by federal,state,and local governments in order to exert control over business practices.

By law, HAZIL is subject to auditing by an outside firm. An auditing firm will make sure the company is operating according to the law. They identify risks that the organization could face and advices. Together, HAZIL and the outside auditing firm will come up with controls to protect from those risks. The risk and controls will be reported and monitored. This outside auditing firm will resolve compliance difficulties and advise the business of rules and controls. They have the power to inspect and request information, to seek orders to compel a business to comply, they can initiate or refer matters for criminal prosecution and can suspend operations if criminal or fraudulent acts are suspected.

This helps protect inventors and consumers. Ensures markets are fair, reduces risk, protects the financial services and builds consumer confidence.

At HAZIL we need to consider the following factors when thinking about risk to the organization:

The nature of the operation The diversity of its operations The complexity of its business The scale of its business The volume of transactions The size of the transactions

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SOX (Sarbanes-Oxley) is a mandate that requires management to certify the accuracy of the financial statement. HAZIL must have controls and reporting methods to ensure the financial statement is true and have supporting documents.

Contract law deals with the formation and keeping of promises. Our legal department is aware of different contracts that HAZIL may need when dealing with customers/clients and with vendors (when we send out purchase orders to buy the material needed or when we go out for quotes, proposals or information).

A few examples of the contract laws covering HAZIL:

Contract Agreements – where one party offers to enter into an agreement and the other must accept the terms

Contract Consideration – something of value received or promised, trying to convince a party to agree to the detail

A Purchase Order in itself is a binding contract – a document sent by the buyer to a seller

Non-disclosure agreement – confidential agreement to not disclose information

Our legal counsel makes sure HAZIL follows the following law:

Antitrust Law – makes it illegal for companies to work with another company to limit supply of materials and keep prices high

Consumer Safety – makes sure the product being used is safe in consumer amounts

Environmental Protection – law that preserves the long-term health and prosperity of individuals

Public Interest – looks at how a proposed course of action affects the welfare of society

Incorporation – law to make sure a company provides detailed information and can advertise publically or raise capital in the stock market.

Bankruptcy – protects if the company is dissolved, the assets are sold to repay the owners. Or the company is legally protected from creditors and allowed to develop a viable new business model.

Patents – a legal document that gives the owner the right to use and profit from what it is they created.

Copyrights – legal documents that give the owner the right to own and profit from intellectual property like written or visual media.

Trademarks – property rights to the name of a product or the company that produces it.

Our legal counsel should have unquestionable integrity. The legal counsel is responsible for trying to assure that the company is acting within the law. The legal counsel gives valuable advice in planning transactions or taking other business initiatives. The legal department is involved early in the planning and decision making process in all areas. In order to have a trusting relationship, the legal counsel will schedule periodic meetings with the board members.

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Core Competencies and Challenges

The core competency of our company is that we offer all-in-one service in Omaha. Customer will find out the convenience and cost benefits that to be satisfied marketing-graphic design- printing services in one company. On one hand, after researching, we know that most of the companies in Omaha offer single service either in marketing , graphic design, or printing. Some of the companies offer two of the services. However, HAZIL provides customers the all-in-one service to satisfy all those needs. Customers have multiple choices in HAZIL. They can choose all kinds of the service or just one or two of them based on their needs. On the other hand, there are few companies serve more than two of these services, but they have geographical disadvantage, because they are not located in Omaha.

One of the challenging for us is that we are a new young company. For a new company, it is very difficult to achieve a creative idea in a mature marketplace. The other challenging thing is funds. HAZIL is planning to have its own printing facility, which will increase its startup cost. Facing these two key challenges, HAZIL will attract more talented people to make our team stronger. Since we lack of experience of running business in this field, we need to recruit some people who has knowledge in this field, and provide us professional idea. Additionally, we will ask for a loan from bank to buy our printing facility at first. Because we print the product by our own department, it can reduce the cost of printing, which will benefit the customer also.

Financial Plan

Determine Risks:

The risks coming to HAZIL when it’s launched is relatively large which base mainly upon the youngness of the company. HAZIL’s limited and unexperienced employees will be a big disadvantage of the company entering the current tough market. The overall economy is in the middle of restructuring process that requires all the firms to be prepared to adapt the variety of unpredicted difficulties, regulations, changes, improvements, or even abandonments. That is one of the significant risks that HAZIL is supposed to face. Another apparent risk is about competition. Certainly, separate marketing companies, which are specifically in charge of single objective such as planning strategies or advertising, possibly do their job better than HAZIL who does a whole package of marketing services in terms of task concentration.

Nonetheless, the nature of HAZIL is a business-to-business company in which we sell to business customers high-quality services based on creative and innovative ideas, satisfactory based on professional and enthusiastic customer service, and especially, the greatest convenience and absolute comfortableness using the whole package of marketing services that HAZIL carries. For those distinctive features, we are very confident to consider a very highly positive probability that HAZIL will succeed in the marketing industry.

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In terms of investing in HAZIL or in stock market, we need to verify to the investors that buying and selling stock is a huge risk. Making money on stock is just another words from gambling. Stock market is where investors have to worry about all kinds of Alpha and Beta risks all the time while with HAZIL, we guarantee to provide an overall information about the company. By providing these information, which includes short and long-term objectives or some of the valuable strategic plans, HAZIL creates favorable conditions for investors to have a chance to study about the company before making investments. If compared gathered information floating around unreliably about the stock market, HAZIL’s educative and creditable information is apparently more valuable. Therefore, investing in HAZIL is much less risky than any stock market.

Summary of Financial Needs:

HAZIL is seeking a loan to increase its equity capital through real estate rental and printing supplies:

A. By renting an office around Central Omaha area B. By renting a warehouse with built-in printing facility

HAZIL has $40,000 in cash to invest. An additional amount of $45,000 in external and loan funds is needed to complete all the rental and supply purchases.

Funding Resources:

HAZIL is funded by three main resources: Initial founders’ attribution, external investors, bank loans, and other financial grants for small businesses and enterprises such as Nebraska State Agencies or Opportunity Fund.

1. Initial Founders’ Attribution:

Siam Ibrahim ___________ $ 7,000

Luan Le ___________ 7,500

Ruy Acevedo ___________ 8,000

Jaymes Haar ___________ 8,500

Yichu Zheng ___________ 9,000

Total $ 40,000

Because these funds come from initial owners of the company. They decide not to receive any interest in a short term of five years. And then, after that, they will discuss to consider a low interest paid based on the company’s overall revenue.

2. External Investors:

HAZIL expects to attract $25,000 from external investors by giving them some impressive presentations which will provide them valuable information about the company’s mission and core values. All the necessary terms of interest rate will also be discussed within these presentation. Specifically, HAZIL offers a zero interest in the first 2 years of starting and 5-year routes of increasing interest rates, starting from 2.45%, and ending at 8%.

In the brightest result, with the expectedly full investment, HAZIL will have the funding budget raised to $65,000.

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3. Bank Loans:

HAZIL considers to get loan funds approved by the two big Omaha local banks First National Bank and Wells Fargo. For each of them, we expect the amount of $10,000 loan at the average interest rate of 2.29% for the loan term of 60-72 months.

Following tables show how HAZIL will be paying its bank loan interest regard to the stated interest rate and terms.

These loan funds will bring the total fund up to $85,000 which is the expected budget that HAZIL needs in capital to start the company.

All other funds after these bank loans will only be granting funds in order to guarantee the capacity of paying all debts and interest to the external investors and bank loans.

4. Financial grants for small businesses from Nebraska State Agencies and Opportunity Fund

HAZIL plans to apply for all the available funds that Nebraska State and Omaha city offer. The projected amount of grant that the company looks forward to receive is any of the range from $8,000 - $15,000.

Fund Dispersal Statement:

HAZIL will be paying for the whole year of rental in order to save the office rental fee. The rental amount for the office area of 2,486 sq ft will be $13,800 instead of monthly payment of $1,200.

The company will be paying warehouse rental fee monthly with the payment of $600 for the area of 2,035 sq ft. The rental contract will be renewed after every year.

The list of primary office and printing supplies being purchased is shown below:

Loan 1 Loan 2

Interest Rate 2.29% 2.29%

Loan Amount $10,000 Loan Terms in Months 60 72

Federal Tax Rate 34.00%

State Tax Rate 5.50% Monthly Payment 177$ 149$

Total Payments 10,593 10,712

Total Interest Paid 593 712

Tax Savings 234 281

Net Amount Paid 10,359 10,431

After-Tax Interest Rate 1.39% 1.39%

BANKING PLAN

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Three Year Income Projection:

The projected sales of the first three year: 2014 2015 2016

1. Whole marketing package x3 x5 x8

($12,465) $37,395 $62,325 $99,720

2. Marketing advising x15 x20 x25

($300) $4,500 $6,000 $7,500

3. Graphic identity design x25 x30 x35

($150) $3,750 $4,500 $5,250

4. Graphic printing design x25 x30 x35

($65) $1,625 $1,950 $2,250

5. Graphic digital design x18 x25 x32

($396) $7,125 $9,675 $12,575

6. Printing x9 x12 x15

($11,545) $103,905 $138,540 $173,175

The following table indicates the projected Net profit (or loss) of HAZIL in the next three years as well as the total profit (loss) of the next three years:

Name of Supplies Cost

1. Office Supplies:

a. 5 Computers 2,625$

b. Appliances (tables, chairs, phones, papers, vendor machine…) 3,463

c. Website Domain 20

d. Business License 72

e. 1 all-in-one Printer 450

2. Warehouse Supplies:

a. Printing supplies (large-scale papers, boards, panels…) 12,475

b. 1 Flatbed Printer 10,085

Total 29,190$

Year 1 Year 2 Year 3 Total

2014 2015 2016 3 Years

Income $ $ $ $

1. Sales/Revenues 158,300 222,990 300,470 681,760

a. Whole Marketing Package 37,395 62,325 99,720 199,440

b. Marketing Advising 4,500 6,000 7,500 18,000

c. Graphic Design: Indentity 3,750 4,500 5,250 13,500

d. Graphic Design: Print Solution 1,625 1,950 2,250 5,825

e. Graphic Design: Digital Solution 7,125 9,675 12,575 29,375

f. Printing 103,905 138,540 173,175 415,620

2. Cost of Goods Sold 10,725 15,091 18,621 44,437

Cost of Goods Sold (Percentage of Sales) 6.78% 6.77% 6.20% 6.58%

a. Beginning Inventory 0 1,750 2,253 0

b. Purchases 12,475 15,594 19,492 47,561

Updated: December 31, 2013

HAZIL CO.

THREE YEAR INCOME PROJECTION

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Projected Balance Sheet & Income Statement:

In order to provide a whole picture of the HAZIL in the first year of running business, a projected balance sheet and income statement for the fiscal year ended on December 31, 2013 has been prepared:

(1) Papers 3,215 4,019 5,023 12,257

(2) Panels 4,865 6,081 7,602 18,548

(3) Posters 2,593 3,241 4,052 9,886

(4) Printing Supplies 1,802 2,253 2,816 6,870

c. Cost of Goods Sold (a+b) 12,475 17,344 21,745 51,564

d. Less Ending Inventory (Dec 31) 1,750 2,253 3,124 3,124

3. Gross Profit on Sales (1-2) 147,575 207,899 281,849 637,323

Gross Profit (Percentage of Sales) 93.22% 93.23% 93.80% 93.42%

Expenses

1. Variables (Selling) 21,454 25,765 32,038 79,258

Selling Expenses (Percentage of Sales) 13.55% 11.55% 10.66% 11.92%

a. Marketing 6,300 8,001 10,161 24,462

b. Travel Expense 1,025 1,302 1,653 3,980

c. Depreciation 3,849 2,310 1,386 7,544

d. Sales Bonuses 7,915 11,150 15,024 34,088

e. Miscellaneous Selling Expense 2,365 3,004 3,815 9,183

2. Fixed (Administrative) 158,726 160,734 163,276 482,736

Administrative Expenses (Percentage of Sales) 100.27% 72.08% 54.34% 75.56%

a. Administration Fees 1,586 2,014 2,558 6,158

b. Insurance 1,956 2,484 3,155 7,595

c. Licenses and Permits 150 191 242 582

d. Loan Payment 1,573 1,609 1,646 4,828

e. Office Salaries w/ Taxes 128,848 128,848 128,848 386,543

f. Rent Expenses 21,000 21,000 21,000 63,000

g. Utilities 2,648 3,363 4,271 10,282

h. Miscellaneous Administrative Expense 965 1,226 1,556 3,747

Total Operating Expenses (1+2) 180,180 186,499 195,314 561,994

Net Income Operations (Gross Profit - Expenses) -21,880 36,491 105,156 119,766

Other Income (Interest Income) 0 730 2,103 2,833

Other Expense (Interest Expense) 213 176 139 528

Net Profit (Loss) Before Taxes -22,093 37,044 107,120 122,071

Taxes: 1. Federal 0 5,557 25,027 30,583

2. State - 2,534 7,327 9,861

Net Profit (Loss) After Taxes -22,093 28,954 74,766 81,627

Net Profit (Loss) (Percentage of Sales) -13.96% 12.98% 24.88% 7.97%

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ASSETS

Current Assets $ $ $

Cash 33,717 37,566 66,708

Petty Cash - - -

Accounts Receivable 34,625 39,658 45,624

Inventory 1,750 2,253 3,124

Short Term Investment - -

Long Term Investment - -

Fixed Assets

Land - -

Buildings - -

Improvements - -

1. Cost - -

2. Less Accumulated Depr. - -

Office Supplies 4,267 1,054 697

1. Cost 6,198 - -

2. Less Accumulated Depr. 1,931 1,054 697

Warehouse Supplies 8,068 1,256 689

1. Cost 10,085 - -

2. Less Accumulated Depr. 2,017 1,256 689

Other Assets - - -

LIABILITIES

Current Liabilities $ $ $

Accounts Payable 11,568 10,585 18,658

Notes Payable 24,919 23,658 42,964

Interest Payable 1,250 1,250 1,250

Pre-Paid Deposits - - -

Tax Payable

Accrued Federal Income Tax - - -

Accrued State Income Tax - - -

Accrued Payroll Tax - - -

Accrued Sales Tax - - -

Payroll Accrual - - -

81,787$

2016

116,842$

2014

HAZIL CO.

PROJECTED BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2014

2015

TOTAL ASSETS 82,427$

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Projected Cash Flow Statement:

The following table shows how efficiently HAZIL manages cash for the first year of running business:

Long Term Liabilities

Notes Payable to Investors 2,500 2,500 2,500

Notes Payable Others 12,558 12,256 16,896

EQUITY

Capital Stock - - -

Surplus Paid In 3,100 2,900 3,005

Retained Earnings 26,532 28,638 31,569

31,538$

50,249$

34,574$

82,268$

29,632$

TOTAL LIABILITIES 52,795$

TOTAL EQUITY

Sales $ 158,300 $ 222,990 300,470

Less: Expenses

Wages Expense 128,848 128,848 128,848

Office Supplies Expense 6,538 1,588 1,835

Warehouse Supplies Expense 22,560 1,457 1,543

Rent Expense 21,000 21,000 21,000

Miscallaneous Expense 3,330 4229 5371

Electricity Expense 5,220 6,480 6600

Telephone Expense 1,620 2,100 2316

Depreciation Expense 3,849 2310 1386

Interest Expense 213 176 139

Total Expenses 193,178 168,188 169,038

Net Income (34,878)$ 54,802$ 131,432$

2014

HAZIL CO.

PROJECTED INCOME STATEMENT

FOR THE END OF YEAR 2014, 2015, 2016

2015 2016

Cash Flow from Operating Activities $ $

Operating Income (EBIT) 32,628

Depreciation Expense 3,849

Loss on Sale of Equipment -

Gain on Sale of Land -

HAZIL CO.

Projected Cash Flow Statement

For the Year Ended December 31, 2014

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Increase in Accounts Receivable (34,625)

Decrease in Prepaid Expenses -

Decrease in Account Payable (18,548)

Decrease in Accrued Expenses -

Net Cash Flow from Operating Activities (16,696)

Cash Flow from Investing Activities

Sale of Equipment -

Sale of Land -

Purchase of Supplies (16,173)

Net Cash Flow from Investing Activities (16,173)

Cash Flow from Financing Activities

Payment of dividends -

Payment of Bond Payable -

Net Cash Flow from Financing Activities -

Net Change in Cash (32,869)

Beginning Cash Balance 85,000

Ending Cash Balance 52,131

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CEO

VP of Operations

Manager of Supply Chain

Accounts Payable

Coordinators

Inventory/Planning Analysists

Wareshouse Managers and

Logistics

Buyers

Operations Admin

Manager of Facilities

Facilities Coordinators

VP of Human

Resources

HR Admin

Human Relations

Coordinators

Safety Coordinators

VP of Legal

Counsel

Legal Admin

Attorneys

Paralegals

CEO Admin

VP of Marketing Marketing

Admin

Manager of Advertising

Advertising Coordinators

Manager of Graphic Design

Graphic Designers

Manger of Printing

Printing Coordinators

Account Managers

CFO CFO Admin

Manager of Information

Technologies

Application Developers